Sole Proprietorship

Small manufacturers and traders, who typically have just a service tax or VAT registration, are known as sole proprietors.

Service Pick

We help you pick the right government registration

Vendor Connect

We connect you with a verified vendor to file the application

Receipt of Registration

We offer continuous support until you receive the registration

Request a call back

What is Sole Proprietorship?

A sole proprietorship is a business that is owned and managed by a single person. You could have one up and running within 15 days, which makes it very popular among the unorganised sector, particularly small traders and merchants. There is no such thing as registration; proprietorships are recognised by other registrations, such as a service tax registration or sales tax registration. As you would imagine with a business that’s so easy to set up, though, its shortcomings are severe: the liability of the proprietor is unlimited and it does not have a continuous existence.

Advantages of a Proprietorship

Minimal Compliance

Sole Proprietorships are only recognised via their government and tax registrations, so the extent of their compliance is limited to the annual filing of their service, professional or sales taxes.

Easy to Start

A sole proprietorship could take 15 days to start if all you need is a Service Tax Registration, but this would stretch to even 45 days if you need Sales Tax Registration. Either way, the process is uncomplicated. PAN card and identity and address proofs are enough to get them done.

Relatively Inexpensive

A Sole Proprietorship is inexpensive as compared to a One Person Company (OPC) and, thanks to the minimal compliance requirements, is inexpensive even over the long-term. You would not need to hire an auditor, for example. This is why, despite its severe shortcoming (unlimited liability), small merchants and traders opt for it.

Sole Proprietorship Registration Process

1 WORKING DAYS

We will help you decide what registration you need, whether service tax, sales tax, import/export code, professional tax or Shops and Establishments Act registration. We will also inform you of the documents you need to get started.

5 WORKING DAYS

We will connect you to a verified vendor who will file your application and keep you up-to-date on its status. Our vendors are well-experienced in handling local registrations.

15 WORKING DAYS

We will offer our complete support until you receive the registration you've selected. This could take up to 15 days in some cases, but as few as 5 days in others. This depends on the workload of authorities and other externalities.

FAQs on Sole Proprietorship

1. Who can start a sole proprietorship?

Any Indian citizen with a current account in the name of their business can start a sole proprietorship. Registration may or may not be required, depending on what business you are planning to establish. However, to open a current account, banks typically require a Shops & Establishments Registration.

2. What documents are needed for opening a current account in the name of my sole proprietorship?

To open a current account, you need proof of the existence of your business. Most banks will ask for a Shops & Establishments Act Registration. In addition, you will need a PAN card and address and identity proofs.

3. How long does it take to establish a business with Sole Proprietorship?

A sole proprietorship business does not take more than 15 days to open-up and get running. This simplicity makes it popular among the small traders and merchants. It's also much cheaper, of course. This is the other reason why it's the most widely used business structure.

4. What businesses are commonly run as sole proprietorships?

Most local businesses are run as sole proprietorships, from your grocery store to a fast food vendor, and even small traders and manufacturers. This is not to say that larger businesses do not operate as sole proprietors. Even some jewellery shops are sole proprietors, but this is not recommended.

5. What documents are required for starting a sole proprietorship?

6. Aside from a current account, is there no need for any other registration?

This depends on the business you're in. If you're running a departmental store, then you would also need a VAT Registration once your turnover is over Rs. 5 lakh per annum. If you're running a air-conditioned restaurant, you would need a VAT Registration and Service Tax Registration.

7. Can I apply for any of these registrations online?

The registrations controlled by the central government -- service tax, for example -- can be availed of online, whereas the state-government-controlled ones may or may not be. In some technologically advanced states, such as Karnata, they are, whereas in others they may not be.

8. What if I wish to convert from sole proprietorship to private limited company or partnership?

You can always choose to do so. The procedure is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships and private limited companies at a later stage.

We are a technology-driven platform organising the professional services industry in india and especially in madhya pradesh . Our services cover all the legal needs of businesses, such as incorporation, government registrations & filings, accounting, documentation and annual compliances, financing, export import assitatnce as well as brand creation and stationery for your coporates too

YOUR CA: INDIA'S LARGEST ONLINE LEGAL SERVICES FACILITATOR

We have been particularly instrumental in ensuring startups are fully compliant with India's legal system. Over the years, the depth of our offerings, affordable prices and customer satisfaction has made us ONE OF THE LEADING online facilitator of legal COMPLIANCES services in India.

STARTING A BUSINESS

Many founders are confused about what kind of entity to register when they start their business. Should it be a private limited company, limited liability partnership, partnership firm, one person company or a sole proprietorship. Each of these has very specific advantages and disadvantages. There is no one type for all businesses. A private limited company registration, for example, would be a good fit for any venture that will look for funding at a later stage. YOU CAN CONTACT US AND We assure you of great service at a reasonable price.

INELLECTUAL PROPERTY

In modern business, there is no other asset as valuable as intellectual property, and yet so many startups end up neglecting it. But this is surely not advisable, as trademarks, copyrights and patents ensure that you have sole rights to your creation, be it your brand, your designs or your inventions. We are well equipped to PROTECT all your IP requirements.

STATUTORY DOCUMENTATION

The worst way to approach business is to just get into new partnerships and arenas without examining consequences. By getting a lawyer to draft contracts or agreements with new vendors, employees and investors, you're ensuring that you have all the RISK covered. We can deliver complex documents, from shareholders' agreements and founders' agreements to terms of service/privacy policy and non-disclosure agreements, at a reasonable cost in a few days' time.
MANDATORY COMPLIANCES
It's not enough to have started a private limited company or LLP. You need to comply with all the requirements of the Ministry of Corporate Affairs and Income Tax Act once you do. You need to inform REGISTRAR of every relevant change you make, whether it is adding a director, removing a partner or increasing authorised share capital. You also need to file annual returns and maintain your accounts. In the case of a private limited company, you even need them audited. WE PROVIDE all these services completely online.